Trouble paying tax and other business liabilities

We understand businesses can face cash flow difficulties.

If you're having difficulties, there are tools and services that can help.

If you're having trouble meeting your cash obligations, consider restructuring the timing of payments and receipts. The best way to make sure you have cash available to meet liabilities is a cash flow budget.

If cash flow continues to be an issue, contact your tax or financial adviser.

If you still have difficulty meeting your tax payments, phone us on 13 11 42 to discuss your circumstances. We can help you understand what options are available in your situation. In some circumstances, we may be able to arrange:

Claiming the tax break for businesses

Businesses with an annual turnover of $2 million or more can claim either a 30% or 10% tax deduction for investing in new tangible depreciating assets of $10,000 or more, depending on when the investments took place and when the assets were installed.

The tax break can be claimed in the 2008–09 to 2011–12 income years as a tax deduction – in the income tax return label 'Small business and general business tax break' – for the income year in which the asset is first used or installed ready for use.

Help for small businesses

We offer help to viable small businesses that are having trouble meeting their tax payment obligations due to challenging business conditions or unexpected events such as natural disasters.

Reduced business income

You may be able to vary your instalment rate if both the following apply:

you make pay as you go (PAYG) instalments on your activity statement

your business income is reduced substantially part way through the tax year.

Difficulty making employee super payments on time

You need to pay super for all eligible employees at least once every financial quarter, by the 28th day of the month following the end of the quarter. This is the last day you can pay a super contribution to an employee's super fund before you are liable for the super guarantee charge.

The super guarantee late payment offset allows you to offset late super contributions against the super guarantee charge for a period.

At risk of insolvency

If you suspect your business is in financial difficulty, get proper accounting and legal advice as early as possible.

There are different types of insolvency administrations, including:

administrator appointed (voluntary administration)

receivership

liquidation

mortgagee in possession.

Action taken against insolvent businesses differs depending on the nature of the insolvency administration. An insolvency practitioner can conduct a solvency review of your business and outline available options.

Unable to access your frozen funds

If you're unable to meet your tax payments due to the freezing of income or non-bank funds, phone us on 13 11 42.

If you can't get access to some funds, you may be able to pay by instalments. Otherwise, you may be eligible for a payment deferral.

ASIC has provisions for taxpayers who have frozen funds and are experiencing financial difficulties. Contact ASICExternal Link for more information about ASIC facilitates withdrawals from frozen funds.

Practical help to manage your business

If you need assistance to manage your business, we can help you better understand your tax obligations.

Our business support service gives you access to experienced tax officers who can answer your questions and help you get on top of your tax issues.

We offer:

pop-up events at local shopping centres during tax time

a range of webinars

call-back phone services

Our business support is free, practical and aimed at keeping your business on track.

Financial counselling advice

Financial counsellors provide information, support and advocacy to assist people in financial difficulty. Their services are free, independent and confidential.

The National Debt Helpline (NDH)External Link is an online and phone financial counselling service available across Australia. The financial counsellors at NDH talk to people with debts and explain what options are available. This may include referral to their local financial counselling service.

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.